Analysis: A New Way of Mandating Saudization?

Key takeaways 

  • In early February, Saudi Arabia’s Communication, Space, and Technology Commission (CST) announced updates to its regulations regarding Saudization requirements for telecom companies operating in the Kingdom. 
  • The updated regulations are notable in that they provide more detailed, specific, and targeted requirements for increasing Saudi employment in the telecom sector compared to previous CST guidelines and similar regulations in other sectors. 
  • This development is most likely coordinated with the Saudi Ministry of Human Resources and Social Development (MHRSD) that provides the overall regulatory framework for Saudization and coordinates sector-specific requirements with industry regulators. 
  • While these regulations target the telecom sector, they may provide insight into how Saudization requirements in other sectors may evolve, as sector regulators move to introduce their own requirements.

 

Read our analysis below. 

____________________________________________________________________________ 

Our Middle East and North Africa Practice has extensive experience applying a systematic approach and a strong understanding of the region’s complex economic, political, and regulatory climates to help clients navigate markets, with our offices in Dubai and Riyadh serving as hubs for the firm's operations. For additional information or to arrange a follow-up, please contact Tomas Valdes, Director, Middle East and North Africa practice.

Albright Stonebridge Group (ASG), part of Dentons Global Advisors, is the premier global strategy and commercial diplomacy firm. As a multidisciplinary advisory firm, we help clients understand and successfully navigate the intersection of public, private, and social sectors in international markets. ASG’s worldwide team has served clients in more than 120 countries.

ASG_Analysis_A_New_Way_of_Mandating_Saudization.pdf